Facet Biotech Investor Files Lawsuit Against Board of Directors

An investor Facet Biotech filed a lawsuit in California State Court on behalf of current investors in Facet Biotech Corporation (Public, NASDAQ:FACT) concerning shareholder claims over alleged breaches of fiduciary duty by the board of directors of Facet Biotech Corp.

According to the complaint the plaintiff alleges breaches of fiduciary duty by the Board of Directors of Facet Biotech in connection with their attempt to sell Facet Biotech Corporation to Abbott Laboratories via “an unfair process and at an unfair price”.

Facet Biotech Corporation, located in Redwood, California, is a biotechnology company. The Company is engaged in identifying and developing oncology therapeutics. On March 09, 2010, Facet Biotech Corporation (Nasdaq: FACT) and Abbott (NYSE: ABT) announced an agreement for Abbott to acquire Facet Biotech Corporation for $27 per share in cash for a net transaction value of approximately $450 million. Facet Biotech Corporation reported in 2007 Total Revenue of $24.63million and in 2008 Total Revenue of $18.26million.

According to the lawsuit the offer is “unfair to shareholders because it does not adequately value the company’s future growth prospects” and the offer “does not incorporate the future value from daclizumab and other products in development” by Facet Biotech. The proposed acquisition is conducted in a manner that is “unfair and unlawful”, and does not “maximizes shareholder value”, so the lawsuit.

Shares of Facet Biotech Corporation (Public, NASDAQ:FACT) traded at $16.25 per share before news and at $27.11 per share in after hours trading.